Bank of India introduces internet remittance facility

Bank of India (BoI) has introduced an internet-enabled inward remittances facility called 'Star e-remit'. The facility is operated through the 200-year old Bank of New York (BNY), is aimed at facilitating remittances from NRIs based in the US.

The agreement was announced jointly at a press conference in Mumbai by M Balachandran, chairman and managing director, BoI, and K Aneish Kumar, country head, BNY.

The facility uses the 'automated clearing house' (ACH) direct debit programme of US banks with which BNY is registered. The ACH direct debit programme is based on the remitter's authorisation to allow the bank to electronically transmit intended payments from his/ her bank account.

The remitter need not be an account holder of either bank. All that is required is an online registration on the BoI web site with authorisation details to the bank from where the funds are to be transferred. Thereafter the money can be remitted to the recipient's account at any given time up to a limit of Rs15,000 per month.

The amount is deposited in to the receiver's account in rupees at the prevailing rate of exchange through the RTGS network. In case the recipient's branch is not on the RTGS network, a draft would be forwarded by BoI to the recipient or his bank after deducting courier charges. The facility guarantees remittance within four days at the outset, at no cost to the receiver.

The service cuts down on time taken for remittances from USA to India through transfers through cheques and demand drafts, which require upward of 15 days to be remitted. At a flat rate of $8 per transfer, it is also substantially cheaper than the speedier wire transfer services, which cost between $30 and $60 for transfers from the US to India, depending on the amount being remitted.